What is a payment processor?

What is a payment processor?

Payment processor is a company that is generally a third party appointed by someone to be able to handle credit cards so that transactions can be easier and safer. As we know that online transactions can use a credit card. But not all websites want to use credit cards due to the rise of carding or searching for identity in the online world. So that a payment processor appears which makes the payment system safer because credit cards are only connected once with the payment processor. This mechanism is carried out by Paypal. But over time not a few people who do not have a credit card but also want to be able to transact via the internet. Then also appears a payment processor where the funds that appear on a payment processor can be purchased through online money changers or through other media. It can easily be said by having a payment processor we have a facility to accept payments from other people in the online world or pay to others.

In another sense we can say we have account numbers in the online world. Nowadays there are many payment processors in the internet world. Then how do we withdraw funds in the payment processor? There are several mechanisms to dilute it, namely:

1. Sold through changers, many websites in Indonesia accept cash withdrawals and purchase funds for payment processors.
2. Disbursed via visa or master credit
3. Transfer to our local bank account or called a wire transfer.
4. Sold to other people who need these funds.

In the online world there are quite a lot of outstanding payment processors including:

1. Paypal
Paypal is the best payment processor and has the legality of permits internationally and in America has official regulations. Paypal is a payment method that has been accepted internationally. And one of the main advantages that makes paypal widely used by online stores in the world is because of the dispute facility to block when there are transactions between two parties that are deemed not in accordance with the promise. Founded in 2000 and became popular in the world since 2003.

2. Payza
Payza is the new name of AlertPay and is the second largest payment processor in the world after Paypal. Has been established since 2004 and based in Canada. As a payment processor and e-currency, alertpay continues to grow and change its name to Payza. It has users in almost 190 countries, 22 currencies and local banks in 44 countries.

3. Perfect Money
Perfect Money was established since 2009 and has an office in Panama. In addition to a small transaction fee and Perfect Money has another advantage that is in the form of interest if there are funds settling in the Perfect Money account that we have at 4% in 1 year.

4. SolidTrustPay
SolidTrustPay is designed so that anyone who has an email account can send or receive SolidTrustPay funds. This company has been established since April 2006 and has grown greatly by providing eWallet.

5. Ego Pay
EgoPay is a payment processor that offers a cheap and simple way to buy goods online to pay for services and entertainment. EgoPay is registered under the registration number 118,260

6. Money Bookers
For those of you who have made gambling or betting in the online world will surely get to know Moneybookers. Moneybookers is one of the most recognized payment processors used in the betting world. Registered in England and Wales under company number 4260907. Financial Service Authority (FSA) registration number 214225. Telephone 0870-3830232. Fax + 44-870-9223274. Mail address Welken House, 10-11 Charter-house Square, London, EC1M 6EH, UK

Risk in Payment Processor

Having funds in a payment processor account that pretty much has the risk to be stolen if we get hacked and so on. But I want to give you the latest news in 2013 where a large payment processor was accused of money laundering and other illegal acts. Its name is Liberty Reserve.

Liberty Reserve is based in Costa Rica and was founded in 2007. It is growing rapidly and almost 90% of internet service users such as opening forex accounts, HYIP products and others are happy to use Liberty Reserve. It is not possible to dispute or refute transactions. Indeed this is a double-edged sword. Where without dispute means if the funds are stolen or lost will not allow funds back. But not a few fraudulent practices by using the practice of dispute, as experienced by my colleague when transacting using other payment processors, my colleague was subjected to a dispute because it was acknowledged by the buyer of the goods not being accepted, finally my colleague was forced to resend, which turned out after checking the goods received twice by the buyer and dispute has been released finally suffered a loss.

In 2013, on May 24, 2013, Liberty Reserve was closed by American law enforcement and the costa rica related to the Liberty Reserve issue which had been previously monitored under the pretext of money laundering and illegal trading practices, and so on.

In addition to Liberty Reserve in the 90s era, it was well-known for E-Gold which finally closed due to the fact that one of them lost competition with Liberty Reserve. But apart from that, a payment processor that does not have a good backup of funds and legality in a country that has anti-money laundering laws will be very dangerous to use in the long run.